Guiqing Zhang has been the CEO of China Overseas Grand Oceans Group Limited (HKG:81) since 2014. This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. After that, we will consider the growth in the business. And finally – as a second measure of performance – we will look at the returns shareholders have received over the last few years. The aim of all this is to consider the appropriateness of CEO pay levels.
See our latest analysis for China Overseas Grand Oceans Group
How Does Guiqing Zhang’s Compensation Compare With Similar Sized Companies?
According to our data, China Overseas Grand Oceans Group Limited has a market capitalization of HK$9.4b, and pays its CEO total annual compensation worth HK$9.4m. (This is based on the year to 2017). We think total compensation is more important but we note that the CEO salary is lower, at HK$1.1m. When we examined a selection of companies with market caps ranging from HK$7.8b to HK$25b, we found the median CEO compensation was HK$3.6m.
As you can see, Guiqing Zhang is paid more than the median CEO pay at companies of a similar size, in the same market. However, this does not necessarily mean China Overseas Grand Oceans Group Limited is paying too much. A closer look at the performance of the underlying business will give us a better idea about whether the pay is particularly generous.
You can see, below, how CEO compensation at China Overseas Grand Oceans Group has changed over time.
Is China Overseas Grand Oceans Group Limited Growing?
On average over the last three years, China Overseas Grand Oceans Group Limited has grown earnings per share (EPS) by 18% each year. Its revenue is up 42% over last year.
This demonstrates that the company has been improving recently. A good result. It’s great to see that revenue growth is strong, too. These metrics suggest the business is growing strongly.
Shareholders might be interested in this free visualization of analyst forecasts. .
Has China Overseas Grand Oceans Group Limited Been A Good Investment?
China Overseas Grand Oceans Group Limited has not done too badly by shareholders, with a total return of 0.08%, over three years. But they probably don’t want to see the CEO paid more than is normal for companies around the same size.
In Summary…
We compared the total CEO remuneration paid by China Overseas Grand Oceans Group Limited, and compared it to remuneration at a group of similar sized companies. We found that it pays well over the median amount paid in the benchmark group.